9911796707
TMI BlogDouble Taxation Agreement - Multilateral Convention on Mutual Administrative Assistance on tax matters with oecd member countriesX X X X Extracts X X X X X X X X Extracts X X X X ..... hall be given effect to in the Union of India with effect from the 1st June, 2012, that is, the date of entry into force of the said Convention. [Notification No. 35/2012/F. No. 500/154/2009-FTD-I] SANJAY KUMAR MISHRA, Jt. Secy. CONVENTION ON MUTUAL ADMINISTRATAIVE ASSISTANCE IN TAX MATTERS Text amended by the provisions of the Protocol amending the Convention on Mutual Administrative Assistance in Tax Matters, which entered into force on 1st June 2011. Preamble The member States of the Council of Europe and the member countries of the Organisation for Economic Co-operation and Development (OECD), signatories of this Convention; Considering that the development of international movement of persons, capital, goods and services - although highly beneficial in itself - has increased the possibilities of tax avoidance and evasion and therefore requires increasing co-operation among tax authorities; Welcoming the various efforts made in recent years to combat tax avoidance and tax evasion on an international level, whether bilaterally or multilaterally; Considering that a co-ordinated effort between States is necessary in order to foster all forms of administrative assistance i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ing taxes: (i) taxes on income, profits, capital gains or net wealth which are imposed on behalf of political sub-divisions or local authorities of a Party, (ii) compulsory social security contributions payable to general government or to social security institutions established under public law, and (iii) taxes in other categories, except customs duties, imposed on behalf of a Party, namely: (A) estate, inheritance or gift taxes, (B) taxes on immovable property, (C) general consumption taxes, such as value added or sales taxes, (D) specific taxes on goods and services such as excise taxes, (E) taxes on the use or ownership of motor vehicles, (F) taxes on the use or ownership of movable property other than motor vehicles, (G) any other taxes; (iv) taxes in categories referred to in sub-paragraph iii. above which are imposed on behalf of political sub-divisions or local authorities of a Party. 2. The existing taxes to which the Convention shall apply are listed in Annex A in the categories referred to in paragraph 1. 3. The Parties shall notify the Secretary General of the Council of Europe or the Secretary General of OECD (hereinafter referred to as the &quo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tion. CHAPTER III FORMS OF ASSISTANCE SECTION I - EXCHANGE OF INFORMATION ARTICLE 4 GENERAL PROVISION 1. The Parties shall exchange any information, in particular as provided in this section, that is foreseeably relevant for the administration or enforcement of their domestic laws concerning the taxes covered by this Convention. 2. Deleted. 3. Any Party may, by a declaration addressed to one of the Depositaries, indicate that, according to its internal legislation, its authorities may inform its resident or national before transmitting information concerning him, in conformity with Articles 5 and 7. ARTICLE 5 EXCHANGE OF INFORMATION ON REQUEST 1. At the request of the applicant State, the requested State shall provide the applicant State with any information referred to in Article 4 which concerns particular persons or transactions. 2. If the information available in the tax files of the requested State is not sufficient to enable it to comply with the request for information, that State shall take all relevant measures to provide the applicant State with the information requested. ARTICLE 6 AUTOMATIC EXCHANGE OF INFORMATION With respect to categories of cases and in ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he request is acceded to, the competent authority of the requested State shall, as soon as possible, notify the competent authority of the applicant State about the time and place of the examination, the authority or official designated to carry out the examination and the procedures and conditions required by the requested State for the conduct of the examination. All decisions with respect to the conduct of the tax examination shall be made by the requested State. 3. A Party may inform one of the Depositaries of its intention not to accept, as a general rule, such requests as are referred to in paragraph 1. Such a declaration may be made or withdrawn at any time. ARTICLE 10 CONFLICTING INFORMATION If a Party receives from another Party information about a person's tax affairs which appears to it to conflict with information in its possession, it shall so advise the Party which has provided the information. SECTION II ASSISTANCE IN RECOVERY ARTICLE 11 RECOVERY OF TAX CLAIMS 1. At the request of the applicant State, the requested State shall, subject to the provisions of Articles 14 and 15, take the necessary steps to recover tax claims of the first-mentioned State as ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... aragraph 1, shall also have this effect under the laws of the applicant State. The requested State shall inform the applicant State about such acts. 3. In any case, the requested State is not obliged to comply with a request for assistance which is submitted after a period of 15 years from the date of the original instrument permitting enforcement. ARTICLE 15 PRIORITY The tax claim in the recovery of which assistance is provided shall not have in the requested State any priority specially accorded to the tax claims of that State even if the recovery procedure used is the one applicable to its own tax claims. ARTICLE 16 DEFERRAL OF PAYMENT The requested State may allow deferral of payment or payment by instalments if its laws or administrative practice permit it to do so in similar circumstances, but shall first inform the applicant State. SECTION III SERVICE OF DOCUMENTS ARTICLE 17 SERVICE OF DOCUMENTS 1. At the request of the applicant State, the requested State shall serve upon the addressee documents, including those relating to judicial decisions, which emanate from the applicant State and which relate to a tax covered by this Convention. 2. The requested State sha ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... assistance is complied with, the requested State shall inform the applicant State of the action taken and of the result of the assistance as soon as possible. 2. If the request is declined, the requested State shall inform the applicant State of that decision and the reason for it as soon as possible. 3. If, with respect to a request for information, the applicant State has specified the form in which it wishes the information to be supplied and the requested State is in a position to do so, the requested State shall supply it in the form requested. ARTICLE 21 PROTECTION OF PERSONS AND LIMITS TO THE OBLIGATION TO PROVIDE ASSISTANCE 1. Nothing in this Convention shall affect the rights and safeguards secured to persons by the laws or administrative practice of the requested State. 2. Except in the case of Article 14, the provisions of this Convention shall not be construed so as to impose on the requested State the obligation: (a) to carry out measures at variance with its own laws or administrative practice or the laws or administrative practice of the applicant State; (b) to carry out measures which would be contrary to public policy (ordre public); (c) to supply info ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... capacity or because it relates to ownership interests in a person. ARTICLE 22 SECRECY 1. Any information obtained by a Party under this Convention shall be treated as secret and protected in the same manner as information obtained under the domestic law of that Party and, to the extent needed to ensure the necessary level of protection of personal data, in accordance with the safeguards which may be specified by the supplying Party as required under its domestic law. 2. Such information shall in any case be disclosed only to persons or authorities (including courts and administrative or supervisory bodies) concerned with the assessment, collection or recovery of, the enforcement or prosecution in respect of, or the determination of appeals in relation to, taxes of that Party, or the oversight of the above. Only the persons or authorities mentioned above may use the information and then only for such purposes. They may, notwithstanding the provisions of paragraph 1, disclose it in public court proceedings or in judicial decisions relating to such taxes. 3. If a Party has made a reservation provided for in sub-paragraph a. of paragraph 1 of Article 30, any other Party obtaining ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he mode of application of the Convention among themselves. 2. Where the requested State considers that the application of this Convention in a particular case would have serious and undesirable consequences, the competent authorities of the requested and of the applicant State shall consult each other and endeavour to resolve the situation by mutual agreement. 3. A co-ordinating body composed of representatives of the competent authorities of the Parties shall monitor the implementation and development of this Convention, under the aegis of the OECD. To that end, the co-ordinating body shall recommend any action likely to further the general aims of the Convention. In particular it shall act as a forum for the study of new methods and procedures to increase international co-operation in tax matters and, where appropriate, it may recommend revisions or amendments to the Convention. States which have signed but not yet ratified, accepted or approved the Convention are entitled to be represented at the meetings of the co-ordinating body as observers. 4. A Party may ask the co-ordinating body to furnish opinions on the interpretation of the provisions of the Convention. 5. Where di ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ragraph 1. 3. In respect of any member State of the Council of Europe or any member country of OECD which subsequently expresses its consent to be bound by it, the Convention shall enter into force on the first day of the month following the expiration of a period of three months after the date of the deposit of the instrument of ratification, acceptance or approval. 4. Any member State of the Council of Europe or any member country of OECD which becomes a Party to the Convention after the entry into force of the Protocol amending this Convention, opened for signature on 27th May 2010 (the "2010 Protocol"), shall be a Party to the Convention as amended by that Protocol, unless they express a different intention in a written communication to one of the Depositaries. 5. After the entry into force of the 2010 Protocol, any State which is not a member of the Council of Europe or of the OECD may request to be invited to sign and ratify this Convention as amended by the 2010 Protocol. Any request to this effect shall be addressed to one of the Depositaries, who shall transmit it to the Parties. The Depositary shall also inform the Committee of Ministers of the Council of Eur ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tory specified in such declaration, be withdrawn by a notification addressed to one of the Depositaries. The withdrawal shall become effective on the first day of the month following the expiration of a period of three months after the date of receipt of such notification by the Depositary. ARTICLE 30 RESERVATIONS 1. Any State may, at the time of signature or when depositing its instrument of ratification, acceptance or approval or at any later date, declare that it reserves the right: (a) not to provide any form of assistance in relation to the taxes of other Parties in any of the categories listed in sub paragraph b. of paragraph 1 of Article 2, provided that it has not included any domestic tax in that category under Annex A of the Convention; (b) not to provide assistance in the recovery of any tax claim, or in the recovery of an administrative fine, for all taxes or only for taxes in one or more of the categories listed in paragraph 1 of Article 2; (c) not to provide assistance in respect of any tax claim, which is in existence at the date of entry into force of the Convention in respect of that State or, where a reservation has previously been made under sub-paragrap ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n its possession any documents or information obtained under the Convention. ARTICLE 32 DEPOSITARIES AND THEIR FUNCTIONS 1. The Depositary with whom an act, notification or communication has been accomplished, shall notify the member States of the Council of Europe and the member countries of OECD and any Party to this Convention of: (a) any signature; (b) the deposit of any instrument of ratification, acceptance or approval; (c) any date of entry into force of this Convention in accordance with the provisions of Articles 28 and 29; (d) any declaration made in pursuance of the provisions of paragraph 3 of Article 4 or paragraph 3 of Article 9 and the withdrawal of any such declaration; (e) any reservation made in pursuance of the provisions of Article 30 and the withdrawal of any reservation effected in pursuance of the provisions of paragraph 4 of Article 30; (f) any notification received in pursuance of the provisions of paragraph 3 or 4 of Article 2, paragraph 3 of Article 3, Article 29 or paragraph 1 of Article 31; (g) any other act, notification or communication relating to this Convention. 2. The Depositary receiving a communication or making a notification ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
